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DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis

NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD

27.29  +0.62 (+2.32%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to DBX. DBX was compared to 285 industry peers in the Software industry. While DBX has a great profitability rating, there are some minor concerns on its financial health. DBX scores decently on growth, while it is valued quite cheap. This could make an interesting combination.


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

DBX had positive earnings in the past year.
DBX had a positive operating cash flow in the past year.
DBX had positive earnings in 4 of the past 5 years.
DBX had a positive operating cash flow in each of the past 5 years.
DBX Yearly Net Income VS EBIT VS OCF VS FCFDBX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M 600M 800M

1.2 Ratios

With an excellent Return On Assets value of 13.60%, DBX belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 19.61%, DBX belongs to the best of the industry, outperforming 95.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is significantly above the industry average of 11.46%.
The 3 year average ROIC (17.97%) for DBX is below the current ROIC(19.61%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 13.6%
ROE N/A
ROIC 19.61%
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
DBX Yearly ROA, ROE, ROICDBX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -50 -100 -150 -200 -250

1.3 Margins

With an excellent Profit Margin value of 17.75%, DBX belongs to the best of the industry, outperforming 83.16% of the companies in the same industry.
In the last couple of years the Profit Margin of DBX has grown nicely.
DBX has a better Operating Margin (19.08%) than 85.61% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX has a better Gross Margin (82.53%) than 88.42% of its industry peers.
DBX's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 19.08%
PM (TTM) 17.75%
GM 82.53%
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
DBX Yearly Profit, Operating, Gross MarginsDBX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60 80

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4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), DBX is creating value.
DBX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, DBX has less shares outstanding
DBX has a worse debt/assets ratio than last year.
DBX Yearly Shares OutstandingDBX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M
DBX Yearly Total Debt VS Total AssetsDBX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.24, we must say that DBX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of DBX (1.24) is comparable to the rest of the industry.
The Debt to FCF ratio of DBX is 3.08, which is a good value as it means it would take DBX, 3.08 years of fcf income to pay off all of its debts.
DBX has a better Debt to FCF ratio (3.08) than 63.16% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.08
Altman-Z 1.24
ROIC/WACC1.97
WACC9.94%
DBX Yearly LT Debt VS Equity VS FCFDBX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

DBX has a Current Ratio of 1.44. This is a normal value and indicates that DBX is financially healthy and should not expect problems in meeting its short term obligations.
DBX has a Current ratio (1.44) which is in line with its industry peers.
A Quick Ratio of 1.44 indicates that DBX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.44, DBX is in line with its industry, outperforming 45.96% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.44
Quick Ratio 1.44
DBX Yearly Current Assets VS Current LiabilitesDBX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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6

3. Growth

3.1 Past

DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.13%, which is quite impressive.
Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.64% on average per year.
Looking at the last year, DBX shows a small growth in Revenue. The Revenue has grown by 1.86% in the last year.
Measured over the past years, DBX shows a quite strong growth in Revenue. The Revenue has been growing by 8.93% on average per year.
EPS 1Y (TTM)26.13%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%46%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%1.35%

3.2 Future

DBX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.42% yearly.
Based on estimates for the next years, DBX will show a small growth in Revenue. The Revenue will grow by 2.00% on average per year.
EPS Next Y3.09%
EPS Next 2Y6.5%
EPS Next 3Y6.48%
EPS Next 5Y10.42%
Revenue Next Year-2.61%
Revenue Next 2Y-1.17%
Revenue Next 3Y-0.42%
Revenue Next 5Y2%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DBX Yearly Revenue VS EstimatesDBX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
DBX Yearly EPS VS EstimatesDBX Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3 4 5

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.87, which indicates a very decent valuation of DBX.
Compared to the rest of the industry, the Price/Earnings ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 88.77% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. DBX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.55, the valuation of DBX can be described as very reasonable.
DBX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 90.88% of the companies in the same industry.
DBX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.85.
Industry RankSector Rank
PE 10.87
Fwd PE 10.55
DBX Price Earnings VS Forward Price EarningsDBX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

DBX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DBX is cheaper than 85.61% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 95.09% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 9.02
EV/EBITDA 13.63
DBX Per share dataDBX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates DBX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)3.52
PEG (5Y)0.28
EPS Next 2Y6.5%
EPS Next 3Y6.48%

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0

5. Dividend

5.1 Amount

No dividends for DBX!.
Industry RankSector Rank
Dividend Yield N/A

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DROPBOX INC-CLASS A

NASDAQ:DBX (4/22/2025, 12:14:03 PM)

27.29

+0.62 (+2.32%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-08 2025-05-08/amc
Inst Owners104.24%
Inst Owner Change0.86%
Ins Owners4.51%
Ins Owner Change5.56%
Market Cap7.86B
Analysts51.58
Price Target28.84 (5.68%)
Short Float %12.53%
Short Ratio6.84
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.68%
Min EPS beat(2)11.62%
Max EPS beat(2)15.74%
EPS beat(4)4
Avg EPS beat(4)14.11%
Min EPS beat(4)11.62%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)12.43%
EPS beat(12)12
Avg EPS beat(12)9.68%
EPS beat(16)16
Avg EPS beat(16)10.28%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.26%
Revenue beat(4)0
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)2
Avg Revenue beat(12)-0.22%
Revenue beat(16)6
Avg Revenue beat(16)-0.11%
PT rev (1m)0%
PT rev (3m)-0.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.55%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.17%
Valuation
Industry RankSector Rank
PE 10.87
Fwd PE 10.55
P/S 3.08
P/FCF 9.02
P/OCF 8.79
P/B N/A
P/tB N/A
EV/EBITDA 13.63
EPS(TTM)2.51
EY9.2%
EPS(NY)2.59
Fwd EY9.48%
FCF(TTM)3.03
FCFY11.09%
OCF(TTM)3.11
OCFY11.38%
SpS8.85
BVpS-2.61
TBVpS-4.34
PEG (NY)3.52
PEG (5Y)0.28
Profitability
Industry RankSector Rank
ROA 13.6%
ROE N/A
ROCE 23%
ROIC 19.61%
ROICexc 79.71%
ROICexgc 1842.96%
OM 19.08%
PM (TTM) 17.75%
GM 82.53%
FCFM 34.2%
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score6
Asset Turnover0.77
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.08
Debt/EBITDA 4.09
Cap/Depr 16.53%
Cap/Sales 0.89%
Interest Coverage 31.99
Cash Conversion 143.38%
Profit Quality 192.66%
Current Ratio 1.44
Quick Ratio 1.44
Altman-Z 1.24
F-Score6
WACC9.94%
ROIC/WACC1.97
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.13%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%46%
EPS Next Y3.09%
EPS Next 2Y6.5%
EPS Next 3Y6.48%
EPS Next 5Y10.42%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%1.35%
Revenue Next Year-2.61%
Revenue Next 2Y-1.17%
Revenue Next 3Y-0.42%
Revenue Next 5Y2%
EBIT growth 1Y26.81%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year18.52%
EBIT Next 3Y4.69%
EBIT Next 5Y8.46%
FCF growth 1Y14.79%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y14.09%
OCF growth 3Y7%
OCF growth 5Y11.09%